Did anyone have experience with NO-doc loans recently? I am looking to borrow against a paid-off investment property at a conservative LVR to "refinance" a margin loan. Wishing to do it quickly - no financial documentation, no assests/liabilities statements. Can provide a mature ABN, crystall-clear credit history, and self-statement of income/expenses. I've been offerred 7.2% variable rate with some fees and LMI. Is it a good deal?
Looking for a handsome No-doc product
- Thread starter Lotana
- Start date
Hi Lotana
If you can stay at or under 60%LVR, then it's hard to go past the ANZ for lo doc loans.
Under 60%LVR, the customer has the choice of 'all' ANZ products, including the Money Saver range of loans, Package deals, all the bells and whistles (if you want them) from about 6.72% variable.
Provided your Accountant is OK with being contacted by telephone more as validation of identity than as verification of your income, the ANZ range of lo doc loans are real sweet treats!
Cheers
Kristine
If you can stay at or under 60%LVR, then it's hard to go past the ANZ for lo doc loans.
Under 60%LVR, the customer has the choice of 'all' ANZ products, including the Money Saver range of loans, Package deals, all the bells and whistles (if you want them) from about 6.72% variable.
Provided your Accountant is OK with being contacted by telephone more as validation of identity than as verification of your income, the ANZ range of lo doc loans are real sweet treats!
Cheers
Kristine
Hi Lotana,
my choice would be the RAMS 70% LVR No Doc product, interest rate 7.24% in years 1-4, then going down to 6.90; true NoDoc, no accountants letter, no assets & liabilities, no income declaration. It has redraw facilitity and can be interest only for 5 years.
Upfront Fees approx. $800
Ongoing fees $8/month
my choice would be the RAMS 70% LVR No Doc product, interest rate 7.24% in years 1-4, then going down to 6.90; true NoDoc, no accountants letter, no assets & liabilities, no income declaration. It has redraw facilitity and can be interest only for 5 years.
Upfront Fees approx. $800
Ongoing fees $8/month
G'Day
Yes, the ANZ do lo doc which is essentially an asset lend at 60%LVR.
I have had great success with this mode of application, even for Docklands apartments as some Forum members will attest!
Just about their whole range of loans including vacant land.
If taken with the Breakfree package, then nil application fees, but if taken as a straight out single loan, then the usual $600 application fee.
There are other lenders, of course, eg HomeSide lo doc for their standard range of loans, and HomeLoans at 7.15%.
Sometimes, the most straightforward deal yields the best results. If the security property is standard residential and the loan is within this fairly low LVR, then there is not much point in paying more.
Of course, if the customer has some mitigating circumstances that's a different story, but a clean credit record etc etc, well, 6.72% would do the job!
And yes, RAMS is a great product, too, for up to 80%LVR, but ANZ will go to 80%LVR on a lo doc now, although not for the discount rates.
Cheers
Kristine
Yes, the ANZ do lo doc which is essentially an asset lend at 60%LVR.
I have had great success with this mode of application, even for Docklands apartments as some Forum members will attest!
Just about their whole range of loans including vacant land.
If taken with the Breakfree package, then nil application fees, but if taken as a straight out single loan, then the usual $600 application fee.
There are other lenders, of course, eg HomeSide lo doc for their standard range of loans, and HomeLoans at 7.15%.
Sometimes, the most straightforward deal yields the best results. If the security property is standard residential and the loan is within this fairly low LVR, then there is not much point in paying more.
Of course, if the customer has some mitigating circumstances that's a different story, but a clean credit record etc etc, well, 6.72% would do the job!
And yes, RAMS is a great product, too, for up to 80%LVR, but ANZ will go to 80%LVR on a lo doc now, although not for the discount rates.
Cheers
Kristine
There are couple of lenders with true NoDoc products.
We have had good experiences with Interstar, Macquarie and RAMS. A newer entrant to this type of product is Adelaide Bank.
We have had good experiences with Interstar, Macquarie and RAMS. A newer entrant to this type of product is Adelaide Bank.
Hi Lotana
Well, unless I'm missing something, just about every lender requires a statement of position, although not all require an estimation of income.
Some lenders will accept an 'I can afford it' statement without having to declare any income at all.
It's all horses for courses. Every time we apply for a loan, we are applying in different circumstances. Sometimes, income is hard to estimate, let alone demonstrate, and this is when lo doc or even no doc loans come in very handy.
I guess even the interpretation of 'lo' or 'no' differs according to our own viewpoint. It pays to keep in mind that all mortgage lending is secured by registered mortgage over the property. The prudential regulations require that a lender demonstrates that they have exercised due care in assessing a loan application, and have not knowingly lent money to an applicant who cannot afford the loan.
For non regulated loans the borrower assumes more responsibility in the transaction, but at a price.
There is never one loan for all purposes or even just one loan for the customer. Past a certain point of serviceability, it is almost impossible to meet all lending criteria and sometimes we just can't be bothered doing all the financials, collating all the documents, searching out the leases and bank statements etc and it's simply a whole lot easier to borrow a bit less but to suffer a whole lot less messing about.
Regarding ANZ: I like the fact that their 'reduced documentation' loans have access to their discounted products, however that does not necessarily mean that 'one size fits all'.
I recently wrote a RAMS lo doc in conjunction with a Solicitor's loan as the customer was buying a specialist property which not many other lenders were interested in. But even the solicitor's fund wanted a statement of position although they weren't fussed about declarations of income.
Every deal is unique. No doubt your broker will have a range of products to suit your current and intended purposes, and each product will require a greater or lesser degree of documentation.
Good luck!
Kristine
Well, unless I'm missing something, just about every lender requires a statement of position, although not all require an estimation of income.
Some lenders will accept an 'I can afford it' statement without having to declare any income at all.
It's all horses for courses. Every time we apply for a loan, we are applying in different circumstances. Sometimes, income is hard to estimate, let alone demonstrate, and this is when lo doc or even no doc loans come in very handy.
I guess even the interpretation of 'lo' or 'no' differs according to our own viewpoint. It pays to keep in mind that all mortgage lending is secured by registered mortgage over the property. The prudential regulations require that a lender demonstrates that they have exercised due care in assessing a loan application, and have not knowingly lent money to an applicant who cannot afford the loan.
For non regulated loans the borrower assumes more responsibility in the transaction, but at a price.
There is never one loan for all purposes or even just one loan for the customer. Past a certain point of serviceability, it is almost impossible to meet all lending criteria and sometimes we just can't be bothered doing all the financials, collating all the documents, searching out the leases and bank statements etc and it's simply a whole lot easier to borrow a bit less but to suffer a whole lot less messing about.
Regarding ANZ: I like the fact that their 'reduced documentation' loans have access to their discounted products, however that does not necessarily mean that 'one size fits all'.
I recently wrote a RAMS lo doc in conjunction with a Solicitor's loan as the customer was buying a specialist property which not many other lenders were interested in. But even the solicitor's fund wanted a statement of position although they weren't fussed about declarations of income.
Every deal is unique. No doubt your broker will have a range of products to suit your current and intended purposes, and each product will require a greater or lesser degree of documentation.
Good luck!
Kristine
Lotana said:
Lotana,
If your planning on using a securitized lender.
You can ask for a no doc- No A & L Statement, but when you sign
your privacy agreement for the lender to do their reasearch.
If the lender is any good they will find out everything your involved in.
Assets, companies etc etc.
They will probably still need to do a credit check. Even if you think
they're not going to.
We do no-docs, but that means we still need everything to do the valuation.
Only then will you have a real offer sitting in your hand.(ie it might be an idea to obtain a suitable val with the lender your looking to use, then work with it)
Land loans for construction can sometimes be extremely difficult if your
equity imput isn't adequate and if it dosn't look attractive it'll be even harder.
Good Luck
Justin
Hiya
Gees, as always its that fair exchange thing isnt it.
Im in the US at the moment and im hearing ads for self cert loans up to a million USD, at rates of around 5.5 to 6 %.
Income declarations often have no semblance to what lenders would normally accept as income, especially variable income streams like cap gains, and distributions from unrelated trusts and managed funds.
ta
rolf
Gees, as always its that fair exchange thing isnt it.
Im in the US at the moment and im hearing ads for self cert loans up to a million USD, at rates of around 5.5 to 6 %.
Income declarations often have no semblance to what lenders would normally accept as income, especially variable income streams like cap gains, and distributions from unrelated trusts and managed funds.
ta
rolf
Finance
Rolf
The last US loan i closed last week was for $USD 720,000 for an Australian foreign national buying in San Antonio and the loan closed at 5.43%.
All we needed was a copy of his passport to qualify.
Most loans for foreign nats in the USA are done on a Ssated basis meaning State your income and verify your Assets. The alternative is NINA which will normally cost around 0.5% more.
Rolf
The last US loan i closed last week was for $USD 720,000 for an Australian foreign national buying in San Antonio and the loan closed at 5.43%.
All we needed was a copy of his passport to qualify.
Most loans for foreign nats in the USA are done on a Ssated basis meaning State your income and verify your Assets. The alternative is NINA which will normally cost around 0.5% more.
